Government Regulations in Economies

1. Explain why government regulation is needed, citing the major reasons for government involvement in a market economy.
2. Justify the rationale for the intervention of government in the market process in the U.S.
3. Assuming that the merger faces some threats and that the industry decides on self-expansion as an alternative strategy, describe the additional complexities that would arise under this new scenario of expansion via capital projects.
4. Analyze how the different forces will come together to create a convergence between the interests of stockholders and managers.
5. Speculate about the implications for the goals of the firm as to whether to maximize the industry's profits or to create more value for the shareholders.
6. Use at least three (3) high-quality academic resources in this assignment. Note: Wikipedia and other Websites do not qualify as academic resources.

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Government Regulations:

The economic standards of a national are dependent on the business activities that are undertaken in the country. The government hence has to set policies that will direct the operations of the businesses. The regulations of the market are placed in all the operations in the market. These are set legal and fair policies that will direct the manner in which the organizations undertake business operations. Government regulations are needed so as the organizations can be accountable for all the decisions they make. This is bound to raise the levels of business standards. Credibility rates of the services and the products are heightened when the government regulates the business market. The interests of the clients will be met through the regulations since quality standards will be set by the governments. The pricing strategies that are used in the industry market are affected by government regulations (Organization, 2005).

Most governments have power over business operations that are undertaken in the business environments that are in the national territorial boundaries. The main aim for the government regulation of the operations in the market is to boost the economic status of the nation. This is based on the fact that the government detects the price levels that will be placed by the different organizations on the goods that will be produced. ...